Buzzfeed’s acquisition of Huffington Post: they are highly similar in content

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Buzzfeed announced on Thursday that it had agreed to buy Verizon media’s HuffPost in the form of shares.
The acquisition of Verizon and Verizon is part of a larger deal. Verizon media is a subsidiary of Verizon Communications Inc. There is a lot of overlap between the two companies. Jonah Peretti, co-founder and CEO of buzzfeed, and Ken LeRer, former president of buzzfeed, are also co founders of the Huffington Post. In 2005, they launched the Huffington Post. Then they quit and started buzzfeed, and the Huffington Post was sold to AOL (which was later acquired by Verizon) for $315 million in 2011.
As part of the deal, Verizon will acquire a minority stake in buzzfeed. In addition, Verizon will make a small investment in buzzfeed. After the acquisition, buzzfeed will also share content on the platform with Verizon media, which is owned by Verizon, and explore cooperation opportunities in advertising.
While the deal is part of a consolidation trend in the digital media industry, the impact of the deal on the deal is not significant compared to other acquisitions. For example, after vice acquired refinery29, the latter brought a large number of new audiences; the acquisition of NY media by vox brought new subscription business revenue. But the content similarity between buzzfeed and Huffington Post is very high. However, the eventual acquisition of Huffington Post will help bring more traffic to buzzfeed and increase the total advertising inventory.
Nowadays, the whole media industry is highly competitive, and many digital media companies have to cut back on expenses in order to survive. A few years ago, the New York Times launched a subscription model, which was a great success. But Peretti believes that requiring readers to pay for content on the platform limits the audience type of the platform.
“The subscription model will lead to platforms that increasingly tend to serve a specific group, a specific audience, rather than a broad audience,” Peretti said of the New York Times’ new subscription model.
As for the limitations of subscription mode audience, Peretti’s solution seems to be to acquire the Huffington Post, improve the dissemination range of platform content, increase advertising revenue, and continue to provide free content for public users. Peretti may continue to acquire other digital media platforms in the future.
“Will only a small number of subscription newspapers have an impact on voters, on the public, on young people, and so on?” “I believe we have a very big market opportunity to meet the needs of these consumers,” he said. Subscribe to one publication, and not everyone will. “